World Bank: East Asia remains fastest growing region

Emerging economies in the East Asia Pacific are growing steadily whilst beingsupported by the recovery in high-income countries, World Bank announced onMonday.According to the East Asia Pacific Economic Update, the World Bank predicted asteady growth for emerging East Asia Pacific economies such as China, Indonesia,Malaysia and Thailand, bolstered by recovery in high income countries and thelimited response of the global economy to the tapering of Quantitative Easing.“Stronger global growth this year will help the region expand at a relatively steadypace while adjusting to tighter global financial conditions.” said Axel vanTrotsenburg, World Bank East Asia and Pacific Regional Vice President.The report estimates that the overall growth rate for emerging economies for EastAsia will be 7.1 percent in 2014, preserving for them the title of fastest growingregion in the world despite a slowdown compared to the average growth rate of 8percent recorded between 2009-2013.The developing countries of the region excluding China are expected to grow by 5.0percent in 2014, slightly down from 5.2 percent last year.However, the report cautions that there are still risks for these bright forecasts tomaterialize, such as unpredicted global interest rate hikes and slower recovery ofhigh-income countries etc.“A slower-than-expected recovery in advanced economies, a rise in global interestrates, and increased volatility in commodity prices on account of the recent geo-political tensions in Eastern Europe serve as reminders that East Asia remains vulnerable to adverse global developments,” said Bert Hofman, Chief Economist ofthe World Bank’s East Asia and Pacific Region.To keep growth and market confidence at high levels, the World Bank advisedcountries of the region to increase their efforts for structural reforms to allow fortheir growth potential.